Crude Oil Prices Eye EIA Data, Gold Drops as Fed Decision Nears

Talking Points:

  • Crude oil prices to import EIA register upsurge total opposite US outlay trends
  • Gold prices competence extend dump if daring FOMC rekindles rate travel speculation
  • What will expostulate longer-term wanton oil and bullion cost trends? See a forecasts

Crude oil prices shot aloft as a United Arab Emirates stressed a joining to OPEC-led concurrent prolongation cut bid and affianced to revoke shipments by a serve 10 percent starting in September. The comments echoed similar remarks from Saudi Arabia yesterday. Prices got a serve boost from API information display US inventories strew a large 10.2 million barrels final week.

The central set of EIA inventory upsurge statistics is now on tap, with an outflow of 3.13 million barrels is expected. An outcome closer to a API imitation competence offer prices a serve boost though a total will contest for change with another Department of Energy release: a monthly news on supply trends. If this points to flourishing US output, a pierce aloft competence struggle.

Gold prices slumped as front-end US Treasury bond yields changed higher, undermining a interest of non-interest-bearing assets. The pierce substantially reflects pre-positioning forward of a arriving Fed financial process announcement. Rhetoric at par with a FOMC-defined standing quo competence sound hawkish relations to traders’outlook,pushing them rethink their position and promulgation a yellow steel reduce still.

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GOLD TECHNICAL ANALYSISGold prices incited lower, producing a bearish Evening Star candlestick pattern. The setup hints a spin downward competence be in a works. From here, a daily tighten subsequent a 14.6% Fibonacci enlargement during 1245.50 exposes a 23.6% spin during 1237.30. Alternatively, a pull above a 61.8%Fib retracementat 1261.16 targets a 76.4% spin during 1274.57 next.

Crude Oil Prices Eye EIA Data, Gold Drops as Fed Decision Nears

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices pushed by insurgency in a 47.10-29 area (38.2% Fibonacci retracement, Jul 4 high) to plea a 50% spin during 48.65. A daily tighten above this separator exposes 50.19 (trend line, 61.8% Fib). Alternatively, a spin behind subsequent 47.10 opens a doorway for a retest of support during 45.32.

Crude Oil Prices Eye EIA Data, Gold Drops as Fed Decision Nears

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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